Oracle Is Set to Report Earnings Next Week. What About the AI Play Has Analysts Excited.

Oracle is set to report fiscal first-quarter earnings on Sept. 9 after the closing bell. (Photograph by Josep Lago/AFP/Getty Images)

Oracle is scheduled to report fiscal first-quarter earnings next week and analysts are heading into the print with lofty expectations.

Their high hopes are warranted. The cloud computing company posted solid earnings and revenue in its fiscal fourth quarter and issued upbeat guidance, including growth targets that one analyst described as “stunning.”

A flood of supportive commentary indicates that many on Wall Street expect the good times to continue. Mizuho named Oracle one of its Top Picks for September 2025, along with Salesforce and Broadcom . The firm rates Oracle at Outperform with a $300 price target.

Shares were up 2.3% at $228.09 on Friday. The stock has gained 37% this year.

Oracle’s GPU clusters “are powering large-scale [artificial-intelligence] training at superior price-performance” than hyperscalers, the Mizuho team wrote. This has fueled an inflection in demand, driving $138 billion in remaining performance objectives in fiscal 2025 and underpinning Mizuho’s forecast for a 28% revenue compound annual growth rate by fiscal 2029.

While questions surround the longevity of the AI boom, Mizuho believes the company’s “end-to-end AI stack,” which spans database, infrastructure, and applications, positions Oracle as a long-term beneficiary of AI adoption.

The firm conceded that operating margins could see pressure over the near term, seeing as Oracle’s GPU rental business has lower gross margins. Moreover, the company likely will need outside financing to support its ambitious capital expenditure plans.

Guggenheim analysts highlighted the so-called steep ramp in capex in a separate note, pointing out that it more than tripled to more than $21 billion in fiscal 2025, heavily weighted to the second half of the year.

There are several ways to look at it. Guggenheim posited that the lofty capex is a good sign for Oracle’s cloud-based computing service business, “given that the company does not build out capacity until it has booked deals.” Oracle stock remains the firm’s “Best Idea,” rated at Buy with a $250 price target.

Cantor Fitzgerald analysts expect investors to hone in next week on commentary regarding Oracle’s Securities and Exchange Commission filing from June 30 that followed fourth-quarter earnings. While details in the filing were sparse, it made mention of several large cloud service wins, including one that is expected to contribute more than $30 billion in annual revenue starting in 2028.

Commentary on capex and margins will be another area of focus, Cantor Fitzgerald noted. The firm rates Oracle at Outperform with a $271 price target.

There’s no shortage of bulls on Wall Street. Of 42 analysts polled by FactSet, 27 rate Oracle at Buy or the equivalent, while 14 rate it at Hold. Just one analyst rates the stock at Underweight.

Oracle is slated to report earnings after the closing bell on Sept. 9.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com